DC Universal Paid Leave – Update 12.07.2016

The DC City Council voted Tuesday to implement a plan to provide more than half a million workers with eight weeks of paid leave for the birth or adoption of a child, one of the nation’s most generous paid family leave programs.

Tuesday’s 11-to-2 vote by the D.C. Council came despite concerns that the leave program would harm small businesses and cost some workers their jobs. Although three states guarantee paid family leave, all of them fund the benefit in part through employee contributions.  DC’s plan is proposed to be funded by a payroll tax and administered via a new city department.

The council initially proposed 16 weeks of paid family leave, funded by a 1 percent payroll tax on businesses. That was then cut to 11 weeks, to reduce the payroll tax to 0.62 percent. On Tuesday, the Council cut it further, to eight weeks for a new child or six weeks to care for a sick relative, while adding two weeks of leave for a worker’s own illness or injury. No state currently guarantees eight weeks of paid leave, although New York will when its program launches in 2018.

Workers would receive up to 90 percent of their salary, with the benefit capped at $1,000 per week. Council Chairman Phil Mendelson said that structure ensures that the city’s lower-income workers stand to gain the most from the benefit.

The council will take another vote on the program in two weeks before sending it to the mayor’s desk.

DC Mayor Muriel Bowser has not said whether she would sign the bill, but the 11-to-2 margin would be veto-proof if it holds when the council votes again.  Critics of the plan cited the program’s costs, its uncertain effect on businesses and the fact that more than 60 percent of those who would get the benefits live in Maryland and Virginia.

If the bill becomes law, it would be sent to Congress for approval, like all laws in the District, and it could run into opposition with Republicans controlling both houses of Congress and the presidency. Congress can pass a resolution invalidating a District law, although that’s extremely rare. Congress more often blocks city policy in other ways, usually through amendments to spending bills.

The bill applies only to private employers because the city cannot tax the federal government and the local government already has a paid leave program. Supporters said funding the program through a payroll tax was the only option because the District is barred from taxing workers who don’t live in the city.

© Copyright 2021 by NUCA OF DC